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Earlier in the week, crude oil prices were mixed in Asia on concerns regarding the shutdown of the U.S. government prior to the release of the weekly data report from the US. However, oil prices reversed its previous gains following reports of higher fuel stocks in the United States that offset the recent efforts of the Organization of Petroleum Exporting Countries in stabilizing oil prices.

According to the American Petroleum Institute, crude inventories in the country have risen by 4.8 million barrels in the week that ended on January 19 to a total of 416.2 million barrels. Gasoline stocks

The New York Mercantile Exchange crude futures were 0.38% higher to trade at $63.81 per barrel while the London Intercontinental Exchange was seen down by as much as 0.12% but is trading around $69.23 per barrel before slipping on the report from the API.

During the trading session on Tuesday, the U.S. West Texas Intermediate crude futures added 30 cents and traded 0.5% higher to $63.87 per barrel compared to rallying to its highest since December 2014 last week to trade at $64.89 per barrel. Brent crude futures also traded 0.4% higher of 27 cents to trade at $69.31 per barrel close to its previous three-year high of $70.37 per barrel last week.

Most crude oil prices have been mostly optimistic since the beginning of the year due to the outlook of the ongoing cuts from the OPEC as well as the agreement between the organization with the participation of a number of non-OPEC countries like Russia in the extension of the production cuts until the end of 2018.

While the current production cap agreement has already boosted overall market sentiment, Saudi Arabia energy minister Khalid al-Falih announced during the weekend that both OPEC and non-OPEC producers should have the agreement to push through with the production cut agreements after the end of the year and also added that a new form of deal may be reached regarding continuing the ongoing cuts.

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Oil Price Recovery

Oil prices have recovered by almost 50% since mid last year when crude oil prices traded around the $40 level. While the OPEC cut agreements have been extended for a number of times now, the rising U.S. crude production during the second half of 2017 have offset the recovery of the oil prices sooner.

However, the most recent agreement of the OPEC to cut 1.8 million barrels per day originally set to expire on March this year and was extended until the end of the year has led to crude oil prices touching a two and a half year high to as much as a three year high.

Oil prices also traded higher during the recent trading session on reports of a global growth forecast from the International Monetary fund regarding a bright global economic outlook this year due to the tax overhaul in the United States as well as a recent pick-up in the economic activity from Asia and Europe.

In Europe, crude oil futures also traded higher during the late trading session on Tuesday on the improved global economic outlook as the market looked forward to the release of US crude stocks data. The ICE March Brent crude futures also were up by 24 cents ending at $69.27 per barrel while the Nymex March light sweet crude contract settling at $63.78 per barrel during the same trading session.

The U.S. West Texas Intermediate was last seen down by 4 cents to settle at $64.43 per barrel while the Brent was down by 0.23% to trade at $69.75 per barrel. The market sentiment on crude oil price recovery is currently positive largely driven by the stronger economic outlook as well as the ongoing OPEC cuts.

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